Post by Trade Coach on Feb 21, 2022 7:27:58 GMT 1
The Central Bank Of Nigeria (CBN) Revises Guidelines For The Anchor Borrowers’ Programme (ABP)
The Anchor Borrowers’ Programme (ABP) is one of the most beautiful agricultural programmes to come from the Federal Government of Nigeria in recent years.
The Anchor Borrowers’ Programme (ABP) is simply an agricultural loan scheme launched in 2015 by the Federal Government of Nigeria (FGN) through the Central Bank of Nigeria (CBN). The programme was designed to boost agricultural yields in the country, stop the importation of large volumes of food into the country and to address negative balance of trade in the country.
We need to let our members know that the Central Bank of Nigeria has revised the Anchor Borrowers’ Programme guidelines; this is to keep you abreast of what is going on in the industry.
The apex bank disclosed this in a document entitled “Anchor Borrowers’ Programme (ABP) Guidelines” by the bank’s Development Finance Department, revised in September 2021.
The bank stated that the programme evolved from consultations with stakeholders comprising the Federal Ministry of Agriculture and Rural Development, State Governments, Agro-processors, Commodity Associations, Financial Institutions and Smallholder farmers. The reason for setting up the programme was to greatly increase agricultural production, boost non-oil exports and diversify the revenue base of Nigeria.
Important Points In The Guidelines
The CBN in line with its developmental functions as enshrined in Section 31 of the CBN Act 2007 established the Anchor Borrowers’ Programme (ABP) to create economic linkages between smallholder farmers (SHFs) and reputable companies (Anchors) involved in the production and processing of key agricultural commodities.
The core of the programme is to provide loans (in kind and cash) to smallholder farmers to boost agricultural production; create jobs, reduce food import bill towards conservation of foreign reserve.
The major objective of the programme is to create economic linkages between smallholder farmers and processors with a view to increasing agricultural output and ensuring food price stability.
The CBN stated that it would increase bank’s financing to improve agricultural productivity by creating an ecosystem that drives value chain financing.
The CBN would bear 50% credit risk after satisfactory evidence that every means of loan recovery has been exhausted by the PFI.
The CBN may vary the risk-sharing ratio based on the specific peculiarities/prospects of the Anchor/Project.
For losses arising from the negligence and/or inaction of the PFI in the execution of any project, the PFI shall bear the full risk and financial losses thereof.
The PFI shall foreclose on pledged collateral one year after the expiration of the initial facility and the risk-sharing ratio prescribed above shall apply on the amount net in default.
The maximum loan limit for each eligible farmer under the programme shall be decided based on CBN ratified Economics of Production (EOP) and validated land size. Repayment shall be by produce and/or cash as may be prescribed by the CBN.
The loan granted under the programme shall be fully repaid within the tenor of the facility.
Where the facility was accessed through a commodity Association, the leadership of the Association shall be responsible for full repayment of facility granted its members.
It is important that our members look at the revised guidelines of the Anchor Borrowers’ Programme (ABP) of the CBN very well to know its implication on their business or activities.
I am always of the opinion that members must always lookout for events and programmes set out by the Federal Government of Nigeria to benefit the citizens of the nation.
Do not sit back doing nothing and be condemning every effort of the government to better the country with loafers.
What better programme can a government of any nation bring up to better the condition of farmers than this noble programme known as the Anchor Borrowers’ Programme (ABP)?
We will continue to bring to you all programmes by the government that will better the lives of farmers and exporters from time to time.
Our company is one of the best companies in Agro Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
The Anchor Borrowers’ Programme (ABP) is one of the most beautiful agricultural programmes to come from the Federal Government of Nigeria in recent years.
The Anchor Borrowers’ Programme (ABP) is simply an agricultural loan scheme launched in 2015 by the Federal Government of Nigeria (FGN) through the Central Bank of Nigeria (CBN). The programme was designed to boost agricultural yields in the country, stop the importation of large volumes of food into the country and to address negative balance of trade in the country.
We need to let our members know that the Central Bank of Nigeria has revised the Anchor Borrowers’ Programme guidelines; this is to keep you abreast of what is going on in the industry.
The apex bank disclosed this in a document entitled “Anchor Borrowers’ Programme (ABP) Guidelines” by the bank’s Development Finance Department, revised in September 2021.
The bank stated that the programme evolved from consultations with stakeholders comprising the Federal Ministry of Agriculture and Rural Development, State Governments, Agro-processors, Commodity Associations, Financial Institutions and Smallholder farmers. The reason for setting up the programme was to greatly increase agricultural production, boost non-oil exports and diversify the revenue base of Nigeria.
Important Points In The Guidelines
The CBN in line with its developmental functions as enshrined in Section 31 of the CBN Act 2007 established the Anchor Borrowers’ Programme (ABP) to create economic linkages between smallholder farmers (SHFs) and reputable companies (Anchors) involved in the production and processing of key agricultural commodities.
The core of the programme is to provide loans (in kind and cash) to smallholder farmers to boost agricultural production; create jobs, reduce food import bill towards conservation of foreign reserve.
The major objective of the programme is to create economic linkages between smallholder farmers and processors with a view to increasing agricultural output and ensuring food price stability.
The CBN stated that it would increase bank’s financing to improve agricultural productivity by creating an ecosystem that drives value chain financing.
The CBN would bear 50% credit risk after satisfactory evidence that every means of loan recovery has been exhausted by the PFI.
The CBN may vary the risk-sharing ratio based on the specific peculiarities/prospects of the Anchor/Project.
For losses arising from the negligence and/or inaction of the PFI in the execution of any project, the PFI shall bear the full risk and financial losses thereof.
The PFI shall foreclose on pledged collateral one year after the expiration of the initial facility and the risk-sharing ratio prescribed above shall apply on the amount net in default.
The maximum loan limit for each eligible farmer under the programme shall be decided based on CBN ratified Economics of Production (EOP) and validated land size. Repayment shall be by produce and/or cash as may be prescribed by the CBN.
The loan granted under the programme shall be fully repaid within the tenor of the facility.
Where the facility was accessed through a commodity Association, the leadership of the Association shall be responsible for full repayment of facility granted its members.
It is important that our members look at the revised guidelines of the Anchor Borrowers’ Programme (ABP) of the CBN very well to know its implication on their business or activities.
I am always of the opinion that members must always lookout for events and programmes set out by the Federal Government of Nigeria to benefit the citizens of the nation.
Do not sit back doing nothing and be condemning every effort of the government to better the country with loafers.
What better programme can a government of any nation bring up to better the condition of farmers than this noble programme known as the Anchor Borrowers’ Programme (ABP)?
We will continue to bring to you all programmes by the government that will better the lives of farmers and exporters from time to time.
Our company is one of the best companies in Agro Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
